Regression analysis of residents’ perception on willingness to pay (WTP) for improved water supply: a case from Nigeria

Tolulope Akeju, Samson Adeyinka, Gbenga Oladehinde, Afolabi Fatusin

Abstract


Purpose. The purpose of this paper was to investigate residents’ perception on willingness to pay (WTP) for improved water supply in Owo Local Government Area of Ondo State, Nigeria using regression analysis.

Methodology / approach. Data were collected from 512 households through multistage sampling from eleven political wards in Owo. The data were analysed using descriptive statistics and stepwise regression.

Results. Findings showed that 44.9 % of the residents obtained water from public utility while 21.5 % and 18.8 % obtained water from well and borehole respectively. Majority of the residents (72.6 %) were of the opinion that public water supply were irregular and unreliable but were willing to pay for improved water supply (74.6 %). Residents were willing to pay an average sum of N972 (US$2.7) per month for improved water supply services.

Originality / scientific novelty. The results of stepwise regression analysis revealed that age, income, access to water supply, education, quality of water, frequency of water supply and gender were the factors influencing residents’ willingness to pay (WTP) for improved water supply services in the study area. There is need for government to create enabling policy for public-private partnership in the improvement of water supply in the study area.

Practical value / implications. The implication of these findings is that government and public-private organisation should consider age, income, access to water supply, education, quality of water, frequency of water supply and gender when evaluating residents’ willingness to pay in the study area.


Keywords


residents’ perception; willingness to pay; improved water supply; Nigeria.

Full Text:

PDF

References


Abebaw, D., Tadesse, T. and Mogues, T. (2010), Access to improved water sources and satisfaction with services evidence from rural Ethiopia. International Food Policy Research Institute (IFPRI), ESSP II Working Paper 32, pp. 1–14.

Fissha, M. (2006), Household demand for improved water service in urban areas: the case of Addis Ababa, Ethiopia, Ph.D. Thesis. Addisababa university.

Wendimu, S. and Bekele, W. (2011), Determinants of Individual wiliness to pay for quality water supply: the case of Wonji Shoa Sugar Estate, Ethiopia. Journal of Ecology and the Natural Environment, vol. 3, no. 15, pp. 474–480.

UNICEF/WHO (2012), Progress on Drinking Water and sanitation: 2012 Update. UNICEF and World Health Organisation, New York, USA.

Omole, D. O. (2013), Sustainable groundwater exploitation in Nigeria. Journal of Water Resources and Ocean Science, vol. 2, no. 2, pp. 9–14. https://doi.org/10.11648/j.wros.20130202.11.

Omonona, B. T. and Fajimi, F. O. (2011), Households willingness to pay for improved water supply services in Ibadan Metropolis of Oyo State, Nigeria. New York Science Journal, vol. 4, no. 4, pp. 72–76.

Littlefair, K. (1998), Willingness to pay for Water at the household level: individual financial respsponsibility for water consumption. MEWEREW Occasional paper No. 26. London: SOAS.

Ifabiyi, I. P. (2011), Willingness to pay for water at the household level in Ilorin, Kwara state. Global Journal of Human Social Science, vol. 11, no. 2, pp. 14–23.

Ayanshola, A. M., Sule, B. F. and Salami, A. W. (2013), Evaluation of Willingness to pay for reliable and sustainable Household water use in Ilorin, Nigeria. Ethiopian Journal of Environmental Studies and Management, vol. 6, no. 6, pp. 754–762. http://dx.doi.org/10.4314/ejesm.v6i6.6S.

Mezgebo, G. K. and Ewnetu, Z. (2015), Households willingness to pay for improved water services in Urban areas: A case study from Nebelet town, Ethiopia. Journal of Development and Agricultural Economics, vol. 7, no. 1, pp. 12–19. https://doi.org/10.5897/JDAE2014.0604.

Whittington, D., Lauria, D. and Mu, X. (1991), A case study of water vending and willingness to pay in Onitsha. World Development, vol. 19, pp. 179–198.

Altaf, M. A. and Hughes, J. A. (1994), Measuring the demand for improved urban sanitation services: results of a contingent valuation study in Ouagadougoa, Burkina Faso. Urban Studies, vol. 31, no. 4, pp. 1763–1776.

Afon, A. (2006), The Use of Residential Satisfaction Index in Selective rehabilitation of Urban Core Residential Areas in Developing Countries. International Review for Environmental Strategies, vol. 6, no. 1, pp. 137–152.

Bi, J., Zhang, Y. and Zhang, B. (2010), Public perception of environmental issues across socioeconomic characteristics: A survey study in Wujin, China. Frontiers of Environmental Science & Engineering in China, vol. 4, no. 3, pp. 361–372. https://doi.org/10.1007/s11783-010-0017-4.

Hunter, L. M., Strife, S. and Twine, W. (2007), Environmental Perceptions of Rural South African Residents: The Complex Nature of a Post-material Concern. Research Program on Environment and Society. Working Paper ES2007-0001, available at: https://www.colorado.edu/ibs/pubs/eb/es2007-0001.pdf.

Mangal, S. (2002), An introduction to psychology. Sterling Publishers Private Limited, New Delhi.

Afon, A. (2009), Residents and the Development Control Agency: A perceptual study of two Local Planning Authority. Journal of Environmental Design and Management, vol. 2, no. 1, pp. 44–54.

Nwankwoala, H. O. (2011), The role of communities in improved rural water supply systems in Nigeria: management model and its implications for vision 20:2020. Journal of Applied Technology in Environmental Sanitation, vol. 1, no. 3, pp. 295–302.

Olorunsogo, O. O. (2006), Report presented at the 1st National Water and Sanitation Forum. Held at Abuja Sheraton Hotel and Towers, Abuja, Nigeria. Between 9th Aug-1s t Sept.

Adepoju, A. A. and Omonona, B. T. (2009), Determinants of willingness to pay for improved water supply in Osogbo Metropolis. Research Journal of Social Sciences, vol. 4, pp. 1–6.

Omole, D. O. and Ndambuki, J. M. (2014), Sustainable living in Africa: Case of water, sanitation, air pollution and energy. Sustainability, vol. 6, no. 8, pp. 5187–5202. https://doi.org/10.3390/su6085187.

Twerefou, D. K., Tutu, K. A., Botchway, E. and Darkwash, S. (2015), Willingness to pay for potable water in the Accra-Tema Metropolitan Area of Ghana. Modern Economy, vol. 6, no. 12, pp. 1285–1296. https://doi.org/10.4236/me.2015.612122.

Calkins, P., Larue, B. and Vézina, M. (2002), Willingness to Pay for Drinking Water in the Sahara: The Case of Douentza in Mali. Cahiers d’économie et sociologie rurales, no. 64, pp. 38–56.

Fujita, Y., Fujii, A., Furukawa, S. and Ogawa, T. (2005), Estimation of willingness-to-pay for water and sanitation services through contingent valuation method: A case study in Iquitos City. The Republic of Peru. Japan Bank International Cooperation Institute, pp. 59–87.

Hensher, D. A., Rose, J. M., and Greene, W. H. (2005), Applied choice analysis: A primer, first edition. Cambridge, UK: Cambridge University Press.

Herath, G. and Masayuki, T. (2014), Willingness to pay and inclusive tariff designs for improved water supply services in urban Bangladesh. Journal of Sustainable Development, vol. 7, no. 5, pp. 1913–9071. http://dx.doi.org/10.5539/jsd.v7n5p212.


Refbacks

  • There are currently no refbacks.


This journal is published under the terms of the Creative Commons Attribution Licens 4.0 International (CC BY 4.0).

 

© Agricultural and Resource Economics: International Scientific E-Journal, 2015–2018.